EXW (Ex Works) is an Incoterm under which the seller simply makes the goods available at their own premises, and the buyer takes on all costs and risks of loading, export clearance, transport and import.
EXW (Ex Works) is one of the eleven Incoterms published by the International Chamber of Commerce. It places the minimum obligation on the seller: the seller simply makes the goods available at their own premises — such as a factory or warehouse — and the buyer takes over from there, bearing all costs and risks of bringing the goods to their final destination.
Because responsibility shifts to the buyer at the earliest possible point, EXW gives the buyer full control of the logistics chain but also the greatest responsibility.
Under EXW, the seller's only duty is to make the goods ready and available for collection at an agreed place, packaged and identified. The seller does not have to load the goods onto the collecting vehicle and is not responsible for export clearance. Everything after that point — loading, inland transport, export formalities, main carriage, insurance, import clearance and duties — is the buyer's responsibility.
An EXW quotation names the seller's location, for example "EXW Ludhiana (Incoterms 2020)".
The seller must:
The buyer must:
Risk transfers from seller to buyer when the goods are placed at the buyer's disposal at the named place — typically before loading. From that moment, any loss or damage is the buyer's responsibility, which is why buyers usually arrange their own cargo insurance from the point of collection.
EXW works best for buyers who are experienced in international logistics and can manage export procedures in the seller's country, often through a local freight forwarder. It gives the buyer a clean "factory price" to compare across suppliers. However, because export clearance is legally the seller's country's process, many buyers prefer FCA, where the seller handles loading and export clearance.
EXW places the least responsibility on the seller; DDP places the most, with the seller delivering the goods cleared for import and all duties paid. FCA sits in between: the seller loads and clears the goods for export, then hands them to the buyer's carrier. Choosing between them depends on which party is better placed to manage each stage of the journey.
EXW is the Incoterm with the lowest seller obligation and the highest buyer responsibility. It offers buyers control and a transparent factory price, but requires the capability to manage export clearance and the full logistics chain. Buyers who prefer the seller to handle loading and export formalities should consider FCA instead. As with every Incoterm, always state the version — for example "EXW (Incoterms 2020)".